PT Pertamina Hulu Energi, the Upstream Subholding of PT Pertamina (Persero), recorded the realization of oil and gas production in the first half of this year at 850 thousand barrels of oil equivalent per day/BOEPD, below the target of 974 thousand BOEPD.
However, the company is optimistic that it can achieve the oil and gas production target that has been set this year. PHE Development and Production Director Taufik Adityawarman said the company's contribution to oil and gas production came from domestic and foreign oil and gas blocks.
"In total, oil production is 390 thousand barrels per day (BPD) and gas is 2.665 million standard cubic feet per day / MMscfd, so that when totaled it becomes 850 thousand BOEPD," he said at the Upstream Subholding Media Gathering.
The realization of 850 thousand BOEPD is still 87.27% of the Company's Work Plan and Budget (RKAP) target of 974 thousand BOEPD. In detail, the realization of oil production of 390 thousand BPD is only 75.44% of the target of 517 thousand BPD, while gas of 2,665 MMscfd actually exceeds the target of 2,648 MMscfd.
He detailed that Regional I Sumatra under the management of PT Pertamina Hulu Rokan (PHR) recorded oil production of 49 thousand BPD and 568 MMscfd of gas. Regional II Java by PT Pertamina EP produces 66 thousand BPD oil and 445 MMscfd gas.
Regional III-Kalimantan under PT Pertamina Hulu Indonesia contributed 64 thousand BPD oil and 691 MMScfd gas. Regional IV-Eastern Indonesia under PT Pertamina EP Cepu (PEPC) produces 114,000 BPD of oil and 490 MMscfd of gas. Thus, the company's four domestic regions recorded oil production of 293,000 BPD and 2,194 MMscfd of gas. Furthermore, the contribution from foreign assets or Regional V under PT Pertamina Internasional EP is 97 thousand BPD for oil and 311 MMscfd for gas.
From the operational performance, it has realized 6 exploration wells and is working on 3 other wells. Then, the realization of 2D seismic along 1,186 kilometers (km) and 3D seismic covering an area of 201 square kilometers (km2).
"Then the realization of exploitation wells has 101 wells and 20 ongoing wells, 241 workover wells, and 5,085 well intervention wells have been carried out," he said.
For additional reserves, as of June, PHE has recorded additional 1P reserves of 36.3 million barrel oil equivalent/MMBOE, and Contingency Resources 2C reserves of 37.8 MMBOE. The implementation of Community Activity Restrictions (PPKM), Taufik admits, has caused some problems in its operations.
Domestically, some assets must be stopped operating within a certain period of time because more than 50% of workers have been exposed to Covid-19. Abroad, where activity restrictions are also being carried out, his party must stop operations at floating storage and loading and unloading facilities / FSOs in Malaysia because of the ongoing exposure to Covid-19.
However, he stressed that his party has prepared several mitigation measures to restore the lost oil and gas production recovery plan. This recovery plan is applied to assets that still have very high production levels. As another strategy, his party will optimize additional production from the Rokan Block managed by PHR as of August 9, 2021.
"Hopefully oil and gas production by the end of the year can be recovered," said Taufik.
Asset Acquisition
Taufik added that the company's oil and gas production is targeted to be boosted to 1 million bpd for oil and 4,000 MMScfd for gas by 2024. One of the strategies undertaken to achieve this target is by acquiring assets from overseas oil and gas blocks. The reason is, with the realization as of last June, there is still a difference in oil production of 600 thousand bpd and 1,400 MMscfd of gas that must be pursued.
“Departing from that, the hope for the future is acquisitions. The current acquisition, we have participated in the bidding,” he said.
Unfortunately, he did not mention which block bidding auction the company was participating in. He explained that the acquisition of assets abroad needed to be done because there were no giant discoveries in Indonesia.
The last giant discovery found in the country was the Cepu Block in 2001, while the gas discovery was the block that supplied the Tangguh LNG Plant in the 1990s. In selecting the assets to be acquired, continued Taufik, his party will consider the level of the reserve to production (R to P) of the oil and gas block. It targets to increase the company's R to P from the current level of 7 to 10.
"What are the criteria [of the targeted oil and gas block], which still have large reserves, large R to P, and large production volumes," he added.
Previously, Director of Oil and Gas Program Development at the Ministry of Energy and Mineral Resources (ESDM) Dwi Anggoro Ismukurnianto said that in order to achieve the national oil production target of 1 million bpd by 2030, the acquisition of oil and gas fields abroad must be carried out by national oil and gas companies, both state-owned and private.
To that end, the government will facilitate acquisitions through bilateral cooperation, starting with G to G (government to government). Currently, Pertamina has a number of oil and gas blocks in 12 countries. In Algeria, the company owns shares in the Menzel Lejmet North (MLN), El Merk (EMK), and Ourhoud (OHD) blocks.
In Iraq, the company holds shares in West Qurna 1 Field. While in Malaysia, the company holds shares in Block K, Block Kikeh, Block SNP, Block SK309, and Block SK311. Furthermore, after the acquisition of the French oil and gas company, Maurel&Prom, the company has oil and gas assets spread across Gabon, Nigeria, Tanzania, Namibia, Colombia, Canada, Myanmar, Italy, and other countries. However, its main assets that are already producing are in Gabon, Nigeria, and Tanzania.
Investor Daily, Page-9, Saturday, July 31, 2021
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